Why do some canceled Etsy orders show up in Seller Ledger while others don't?

If you are trying to compare your Seller Ledger numbers to your Etsy account numbers, it helps to understand how slightly different transactions are handled.

In the case of canceled orders on Etsy, they can actually be treated slightly differently depending on whether payment was ever collected.

If an order is canceled after payment is collected, that order does get sent to Seller Ledger an income, but it then also generates a corresponding refund for the same order, which effectively cancels out the income.

But, if the order is canceled before payment is received, Seller Ledger does NOT receive that order as income at all.

This kind of knowledge also helps better understand why there can be discrepancies with 1099-Ks (as we've outlined in detail in the case of eBay.)